Close Brothers Group plc ("the group" or "Close Brothers") today issues its Interim Management Statement relating to the third quarter from 1 February 2012 to 30 April 2012. All statements in this release relate to that time period, unless otherwise indicated.
Group and divisional performance
The group has delivered a solid performance overall with strong growth in the Banking division although difficult market conditions continued to impact Securities, particularly in April. The group has maintained a strong funding position and remains well capitalised.
The Banking division has delivered another strong performance, benefiting from continued favourable market conditions and good demand for its lending services. The loan book increased 6% in the quarter to £4.0 billion (31 January 2012: £3.8 billion) at 30 April 2012 reflecting strong new business levels particularly in motor finance, asset finance and property, and has increased 15% in the financial year to date. The net interest margin remains strong, although slightly lower than the first half of the financial year. The credit quality of the loan book continues to improve and the bad debt ratio reduced slightly in the period.
Performance in the Securities division continues to be affected by difficult market conditions, particularly for Winterflood. Winterflood's average bargains per day and income per bargain were slightly higher relative to the first half, as improved trading conditions in February and March were followed by a reduction in retail investor risk appetite towards the end of the period. Seydler's performance improved modestly, principally reflecting increased capital markets activity.
In April the group reduced its holding in Mako by a further 6% to 27%, under the previously announced agreement for the phased sale of its investment to the management team.
The Asset Management division is in the final stages of its restructuring and made a small loss as expected. Private Clients Assets under Management ("AuM") increased slightly to £7.0 billion (31 January 2012: £6.9 billion) at 30 April 2012 reflecting positive net new funds. Total AuM reduced to £8.3 billion (31 January 2012: £8.6 billion) reflecting the completion of the previously announced sale of OLIM's property fund management business with £0.4 billion AuM.
The Banking division continues to see good growth opportunities, although difficult trading conditions continue to impact Winterflood's performance. Overall we continue to expect a solid result for the year.
Sophie Gillingham Close Brothers Group plc 0207 655 3844
Debbie Sager Close Brothers Group plc 0207 655 3845
Peter Ogden Maitland 0207 379 5151
About Close Brothers
Close Brothers is a specialist financial services group which makes loans, trades securities and provides advice and investment management solutions to a wide range of clients. Close Brothers was established in 1878 and today employs over 2,500 people, principally in the UK. Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250.
This information is provided by RNS
The company news service from the London Stock Exchange
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.